MOSCOW -- OAO
Sibneft
reported a big first-half turnaround, becoming the latest Russian oil company to announce big gains from last year's ruble devaluation and a more recent spike in world oil prices.

Oil companies, which earn foreign currency for their exports but pay almost all of their costs in rubles, have benefited more than any other industry from the ruble's 75% devaluation since August 1998.

The Russian government has also benefited, collecting taxes on time and in cash and slapping higher export tariffs on crude and refined oil.

Sibneft's net income according to U.S. Generally Accepted Accounting Principles swung to $63.8 million (59.4 million euros) in the first half from a loss of $60.3 million in the year-earlier period. Revenue fell 45% to $621.59 million from $1.12 billion because of the devaluation. Sibneft is Russia's sixth-largest oil company.

"Although the oil price only really started to rally in the second quarter, the combination of cost cutting, devaluation gains and efficiency improvements means Sibneft has a sound base from which to grow," said Sibneft's president, Eugene Shvidler.

Prices on Russian crude exports have surged amid a general oil rally to about $22 per barrel from $9 per barrel in January.

AO
Lukoil
, Russia's biggest oil company, last month reported net income of $407 million for the first half, more than triple the previous year's figure, according to Russian accounting standards. Net income at
Surgutneftegaz
, the nation's third-biggest company in terms of production, more than doubled to $424 million by Russian accounting standards. Neither company reported their results in terms of U.S. GAAP.

Many believed the benefits of the ruble devaluation would be short-lived, but more than a year later, production costs at most oil companies are still about 60% lower than they were before the devaluation. Russian oil workers, whose salaries have collapsed, have suffered amid the general industry prosperity.

Russian consumers, too, lost out this summer as companies rushed to export fuel rather than sell it in Russia, where prices are much lower and in rubles. The export rush created shortages and severe price increases on gasoline at home.

Alarmed by domestic market conditions, the Russian government in August banned the export of gasoline and limited the export of fuel oil and diesel fuel. But First Deputy Prime Minister Viktor Khristenko said on Monday that domestic supplies had stabilized and that the bans could be lifted in one to two weeks, Prime-Tass news agency reported.

He added that Russia is considering increasing export duties on crude oil to 10 euros per metric ton, just weeks after raising them to 7.5 euros from five euros. Higher tariffs were also introduced for oil products last month.

Jim Henderson, an oil analyst with Renaissance Capital in Moscow, said he expected the benefits of the devaluation to carry on through 2000 and possibly beyond, as inflation is slow to catch up with the devaluation.

MOSCOW -- OAO Sibneft reported a big first-half turnaround, becoming the latest Russian oil company to announce big gains from last year's ruble devaluation and a more recent spike in world oil prices.